Guaranteed Stop Premium
Costs & FeesThe extra charge for a stop order guaranteed to fill at the exact level requested, with the broker absorbing gap and slippage risk.
A guaranteed stop premium is the extra charge a broker applies for an order guaranteed to execute at the exact price specified, with no slippage, even if the market gaps straight through that level. The broker absorbs the gap risk and prices that transfer of risk as a premium — sometimes taken as a wider spread on the position while it is open, sometimes charged only if the guaranteed stop is actually triggered. The reason the product exists is that an ordinary stop-loss becomes a market order once touched, so it can fill far from the requested level after a weekend gap or a policy surprise. The premium is therefore a cost paid for certainty, weighed against that exposure.